American regulators monitor marketplace lending risks

Banks, insurance companies and banks have recently leapt into marketplace lending, thus drawing the attention of American regulators, who are already concerned with the fact that borrowing by consumers as well as small businesses via online platforms might generate risks to American financial stability.

In its annual review of the American financial system issued on Tuesday, the Financial Stability Oversight Council including all the country’s financial regulatory chiefs, also told that it’s monitoring events overseas, including the upcoming Brexit vote as well as Venezuela’s turmoil. Apart from that, it drew attention to China as this Asian country currently appears in the midst of long-terms transactions in the national economy and this could generate a number of global implications.

Every year in its review, the council addresses an array of serious risks in cyber-security. However, this year, it dared to expand its technology focus to include almost an instant surge of marketplace lending, that only obtained just a brief mention in the previous year’s report.